``Regulators have recently been looking into why mortgage rates, spurred on by record low interest rates, haven't fallen more. (Mortgage rates have fallen to a recent 3.4%. But that's still much higher than Fannie and Freddie funding rates, and the 10-year Treasury bond at a recent 1.6%.) On Monday, the Federal Reserve Bank of New York held an all day conference on the topic. According to attendees, the reasons discussed included a lack of competition in the mortgage market, and the fact that banks are still dealing with a high number of foreclosures. Many expect the spread between government bonds and mortgage rates to narrow in the next year. That's made some question just how long the current bank profit rebound can continue.''